
The Dow Jones Industrial Average climbed Monday, outperforming the market, while the Nasdaq Composite slipped as traders continued to sell off major tech stocks that have powered the bull market.
The 30-stock Dow rose 358.67 points, or 0.86%, to close at 42,297.12 as investors rotated into nontech shares such as Caterpillar, JPMorgan and UnitedHealth. Meanwhile, the tech-heavy Nasdaq dropped 0.38% to 19,088.10. The S&P 500 inched up 0.16%, ending at 5,836.22. All three benchmarks are down for the past two weeks, with tech shares causing most of the damage.
Palantir and Nvidia, two of the bull market leaders popular with retail investors, shed more than 3% and nearly 2%, respectively, building upon their losses from last week. Nvidia fell almost 6% during the period, while Palantir lost more than 15%. Other popular tech shares including Apple and Micron were also down in the session.
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While tech shares pulled back, the energy sector beat the broader market to add more than 2% as oil prices rose. Health care and materials also advanced.
Surging bond yields have been one of the catalysts for the sell-off in growth-oriented shares. The 10-year Treasury yield on Monday touched the highest level since November 2023, ending the day at 4.79%. Yields surged on Friday following a stronger-than-expected jobs report that cast doubt on further rate cuts by the Federal Reserve.
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"With the 10-year yield potentially getting to 5%, I think it's going to be very hard for the equity market to really gain any meaningful traction here until there's — at minimum — stability in interest rates," said Adam Turnquist, chief technical strategist at LPL Financial.
"We don't think there's risk of the market going over to bear market territory, but certainly a correction could be in the cards on a short-term basis," he added.
Money Report
Investors are hoping the start of the fourth-quarter earnings season will stabilize markets. Banks including Citigroup, Goldman Sachs and JPMorgan Chase report on Wednesday, while Morgan Stanley and Bank of America will post results on Thursday.
Data this week includes the December consumer price index on Wednesday morning. Before that, investors will parse wholesale inflation with December's producer price index report on Tuesday.
Correction: An earlier version misstated the weekly decline for Palantir.
S&P 500, Dow close higher while Nasdaq falls Monday
The S&P 500 and Dow Jones Industrial Average ended Monday's session in the green.
The broad market index added 0.16%, while the Dow rose 0.86%.
The tech-heavy Nasdaq Composite underperformed the market and closed 0.38% lower.
— Hakyung Kim
Energy outperforming in January
Energy has emerged as the top-performing sector month to date in what has been a rocky start for the market.
The sector has gained 5% as oil prices spiked following the U.S.' broadening of sanctions on Russian oil on Jan. 8.
Meanwhile, real estate and information technology are down 2.8% each in January, making them tied for the biggest underperformers in the S&P 500.
— Hakyung Kim
Edison International shares extend losing streak
Investors kept selling off Edison International shares on Monday as wildfires continued burning in Los Angeles.
Shares of the Southern California utility provider tumbled more than 12% in Monday's session, touching its lowest level in more than a year. If that holds through session close, it will mark the stock's sixth straight losing session and biggest one-day loss since 2020.
Traders largely dumped the stock last week as the fires quickly gained national attention. Shares have plunged more than 28% so far in 2025, making Edison the worst performer in the S&P 500 since the new year began.
CEO Pedro Pizarro told CNBC on Monday that the company has not found any electrical anomalies tied to its equipment in the hours before the Eaton Fire began.
— Alex Harring
Honeywell jumps on report it plans to break up
Honeywell shares popped around 3% after Bloomberg News reported that the conglomerate was planning to break up amid pressure from activist investor Elliott Management.
— Fred Imbert
Nvidia, Moderna among stocks making the biggest moves midday

These are the stocks making the biggest moves during midday trading:
- Nvidia, chip stocks — Popular semiconductor stocks declined after the Biden administration revealed new artificial intelligence chip export caps. Nvidia lost more than 2%.
- Moderna — Shares shed more than 20% after the vaccine maker cut its 2025 sales guidance by about $1 billion to range between $1.5 billion and $2.5 billion.
- Quantum stocks — Quantum computing stocks dropped after Meta Platforms CEO Mark Zuckerberg became the latest high-profile executive to ease expectations for the technology. Rigetti Computing dropped 27%.
Read the full list here.
— Samantha Subin
Wall Street is underestimating effect of president-elect Trump's immigration and tariff plans, says Venu Krishna
Investors could be looking over President-elect Donald Trump's proposals for both immigration and tariffs and their ramifications for growth, according to Barclays head of U.S. equity linked strategies Venu Krishna.
"With the new administration, there are two opposing forces. On one hand you have the pro-growth policies, which the market has increasingly focused on thus far," Krishna told CNBC's "Squawk on the Street" on Monday. "On the other hand, the risk that has been underpriced is the impact of tighter immigration … and tariffs."
— Brian Evans
Dollar index jumps to highest level in more than two years
The dollar index, which measures the greenback against a basket of major currencies, strengthened 0.3% Monday to its highest level since November 2022.
The euro fell 0.3% to its weakest point against the dollar since November 2022 at $1.02, while the sterling dropped 0.4% versus the greenback at around $1.22.
— Hakyung Kim
Investors left unimpressed with retailers' early holiday results

Wall Street was not a fan of the early holiday results posted by major retailers on Monday.
Abercrombie & Fitch and American Eagle both raised their fourth-quarter outlooks after reporting a strong response from shoppers during the holiday period. However, the stocks dropped 18.2% and 4.5%, respectively.
Urban Outfitters also posted strong growth during the holidays, but shares were still down more than 3%.
— Gabrielle Fonrouge
Chipotle headed for another losing session
Chipotle Mexican Grill is starting off the year on the wrong foot.
The stock shed 0.7% on Monday, putting it on track for its seventh consecutive losing session. If the losses hold, it will mark the fast-casual chain's longest losing streak since an eight-day slide that ended in August 2023. It will also mark the stock's first-ever start to a year with seven straight declines.
Year to date, shares are already down about 7%.
— Fred Imbert
Penumbra shares weak on Johnson & Johnson's acquisition news
Investors have been eager for acquisitions to pick up in the biotech space, and Johnson & Johnson has been very prominent on the list of potential bidders. That said, the company's decision to buy neuropsychiatric drugmaker Intra-Cellular may have thrown off some observers, according to Gordon Haskett's Don Bilson. He said Penumbra shares rose last week when rival Inari Medical agreed to be bought out by Stryker, with speculation running high that J&J might look to extend its streak of medtech deals by scooping up Penumbra.
"JNJ is obviously big enough to walk and chew gum at the same time, but rather that top off its hat trick in MedTech, it has struck in a different direction this morning and added a target that it can tuck inside its pharma portfolio," Bilson wrote. He added, it is possible J&J may make other acquisitions, but with its recent deal-making tally hitting almost $50 billion, it might "slow its roll for the time being."
Penumbra shares are 2% lower in trading, while Intra-Cellular shares have added nearly 35%. J&J shares are creeping up less than 1%. Intra-Cellular's gains come on top of a 15% spike on Friday after the company settled a patent dispute.
— Christina Cheddar Berk
Apple slide continues, bringing stock into correction territory
Shares of Apple fell more than 2% on Monday, bringing the tech giant more than 10% below its record close from Dec. 26.
The stock has now fallen in eight of the past 10 trading sessions. After reaching nearly $4 trillion in market cap, Apple is back to the $3.5 trillion level.
The latest drop comes after Bloomberg News report, citing third-party research data, that iPhone sales declined in the fourth quarter.
— Jesse Pound
Consumers expect inflation to stay elevated, New York Fed survey finds

Consumers still expect inflation to hold above the Federal Reserve's target for at least the next five years, according to a survey released Monday.
The New York Fed's monthly Survey of Consumer Expectations for December showed the one-year outlook was unchanged at 3% from the prior month. At the three-year horizon, the outlook rose 0.4 percentage points, also to 3%, but fell to 2.7% on a five-year basis, down from 2.9% the prior month. The Fed targets inflation at 2% annually.
On the employment front, expectations that the unemployment rate will be higher a year from now fell to 34.6%, a decline of 0.4 percentage points. However, the rate of respondents who think they could find a new job after losing one slid to 50.2%, a decline of nearly 4 percentage points and the lowest reading since April 2021.
— Jeff Cox
Oil and gas stocks jump Monday
Oil stocks traded higher Monday, following wider U.S. sanctions on Russian oil announced last Friday that have boosted oil prices since.
The Oil & Gas ETF (XOP) jumped 2.6%, on pace for its 13th positive day in 14 days. Some of the best-performing names include Par Petroleum, which has added nearly 7%, as well as PBF Energy and CVR Energy, which are up more than 4% each.
— Hakyung Kim, Gina Francolla
BofA: Stocks can endure more inflation after last week's jobs data, market pullback
Friday's sell-off on the back of strong labor stats gave the market more breathing room when it comes to inflationary pressures, according to Bank of America.
Nonfarm payroll data came in much hotter than expected on Friday, triggering a steep market sell-off to end trading last week. With that eye-popping number out of the jobs report, analyst Gonzalo Asis said investors now have more of a margin for error with what to expect on the inflation front.
That can be beneficial as attention turns to the consumer and producer price index data due this week.
"While hotter prints could put further pressure on equities, we believe the blowout NFP increases how much inflation equities can withstand … especially after last week's selloff," Asis wrote to clients.
Asis also said he believes the Federal Reserve's interest rate cutting cycle is over after Friday's jobs data.
— Alex Harring
U.S. Steel rises on potential Cleveland Cliffs-Nucor joint bid

U.S. Steel shares rose on Monday after CNBC's David Faber reported, citing sources, that Cleveland Cliffs and Nucor were partnering in a potential bid for the steel giant.
Cleveland Cliffs would buy all of U.S. Steel in cash then sell the Big River Steel subsidiary to Nucor, per the sources. The offer would be in the high $30s per share.
— Spencer Kimball
Moderna tanks 20% after guidance cut
Moderna shares tanked more than 23% after the biotech giant cut its 2025 sales forecast.
The company said it expected revenue for this year to range between $1.5 billion and $2.5 billion, most of which will come in the second half. Moderna previously issued full-year guidance of $2.5 billion to $3.5 billion.
Monday's decline put the stock on track for its worst day on record.
— Fred Imbert
Stocks open lower Monday
U.S. stocks began Monday's session in the red.
The S&P 500 fell 0.9%. The Dow Jones Industrial Average declined 59 points, or 0.1%. The tech-heavy Nasdaq Composite dropped 1.4%.
—Hakyung Kim
Jefferies downgrades shares of Pinterest on weaker growth expectations

Jefferies is officially stepping to the sidelines on Pinterest.
Shares fell around 3% in the premarket after analyst James Heaney downgraded the stock to hold from buy. His price target still reflects some gains ahead, implying more than 4% upside potential.
"PINS has struggled to move beyond experimental brand budgets into 'always on' performance budgets," the analyst wrote in a Monday note. "While PINS has made progress with some lower funnel ad tools (e.g. Direct Links), our checks suggest that PINS hasn't been able to progress beyond 5% of spend for most performance advertisers."
Heaney added that new products such as Performance+ — its tool that seeks to boost ad campaigns through artificial intelligence and automation features — are still "too early" to spur mid-teens revenue growth for the company. He also said the pace of margin expansion will likely slow from here.
The stock has seen declines in recent months, falling more than 25% over the past six months and more than 10% over the past three.
— Sean Conlon
Stocks making the biggest moves before the bell: Abercrombie & Fitch, Pinterest and more
These are the stocks moving the most in premarket trading:
- Abercrombie & Fitch — Shares of the clothing retailer plunged 11% in premarket trading even after Abercrombie raised its outlook for the fourth quarter on strong holiday sales expectations.
- Pinterest — Shares of the visual sharing platform slid 3% in the wake of Jefferies' downgrade to hold.
- Howard Hughes Holdings — Shares of the real estate developer jumped 9% after Bill Ackman's Pershing Square proposed a deal to form a new entity to merge with the real estate company, offering current holders $85 a share.
Read the full list of stocks moving here.
— Lisa Kailai Han
Bill Ackman offers to take over Howard Hughes for $85 a share

Bill Ackman proposed forming a new subsidiary of Pershing Square, which currently owns about 38% of Howard Hughes, that would merge with Howard Hughes Holdings, the real estate developer based in The Woodlands, Texas.
"While we are pleased with the substantial business progress Howard Hughes Holdings has made over the more than 14 years since it went public, we, like other long-term shareholders and this board, have been displeased with the Company's stock price performance," wrote Ackman in a letter to the Howard Hughes board.
Howard Hughes shares jumped 11% to $79.67 a share in premarket trading on the news.
— Yun Li
Barclays dials back optimism on small-cap stocks after jump in yields
The jump in Treasury yields seems likely to put any potential small-cap rally on the back burner, according to Barclays.
Paris-based strategist Matthew Joyce said in a note to clients that the firm is downgrading its outlook on small caps to neutral from positive because of the rise in yields.
"Our Small Cap basket was up around 0.5% vs. the market last month, but Small Caps are suffering [month to date] on surging yields. We still think they are attractive, trading at a 20y low valuation relative to the market. But given the risk that yields could continue higher from here and still awaiting a definitive uptick in European economic activity data, we think it is prudent to downgrade Small Caps while we wait to see how these two drivers play out," the note said.
— Jesse Pound
Johnson & Johnson to acquire Intra-Cellular Therapies for more than $14 billion

Johnson & Johnson announced Monday that it will acquire Intra-Cellular Therapies for $132 per share in cash, valuing the neurological disorder treatment company at $14.6 billion.
Shares of Intra-Cellular soared 35.5% on the news. J&J's stock was flat.
"This unique opportunity to add Intra-Cellular Therapies to our Innovative Medicine business demonstrates our commitment to transforming care and advancing research in some of today's most devastating neuropsychiatric and neurodegenerative disorders," said Johnson & Johnson CEO Joaquin Duato in a statement.
The deal is expected to close later this year.
— Fred Imbert
Tech stocks under pressure again
Tech stocks were under pressure again on Monday, dragging down the broader market. Nvidia and Palantir shed more than 3% each. Tesla and Meta Platforms lost 2.6% and 1%, respectively, in the premarket.
Those losses will add to notable declines seen last week from some these names. Nvidia dropped 5.9% during that time, while Palantir plunged 15.8%. Tesla dropped 3.8% last week.
— Fred Imbert
Asia markets fall as traders assess a strong U.S. jobs report and China trade data
Asia markets fell Monday as traders assessed a stronger-than-expected U.S. jobs report, which could support a slower rate cycle out of the U.S. Federal Reserve.
Investors also parsed through December trade data from China, which saw both imports and exports beat expectations.
Exports rose 10.7% from a year earlier, beating Reuters' expectations of 7.3% year-on-year growth. The country's imports in December unexpectedly rose 1%, compared with Reuters' estimates of a 1.5% decline.
Despite this, mainland China's benchmark CSI 300 fell 0.27% to 3,722.51, extending losses after having closed at its lowest level since September 2024 on Friday.
Hong Kong's Hang Seng Index was down 0.73% as of its final hour of trade, falling below 19,000 for the first time since last September.
— Lim Hui Jie
China's central bank pledges support to stabilize the yuan

The People's Bank of China and other regulators pledged to enhance the management of the foreign exchange market and prevent any risk of "overshooting" of the yuan, the PBOC said in a statement.
During a meeting held in Beijing, officials stressed that it was "necessary to unswervingly maintain the basic stability of the RMB exchange rate at a reasonable and balanced level," according to the PBOC statement.
The Chinese currency strengthened on Monday, with the onshore yuan trading at 7.331 against the dollar, while the offshore yuan was at 7.352.
— Lee Ying Shan
Stock futures open little changed
Stock futures were little changed on Sunday, with Wall Street looking toward a data-heavy week as well as fresh corporate earnings.
Dow Jones Industrial Average futures ticked down 13 points, or 0.08%. S&P 500 futures fell 0.25%, while Nasdaq 100 futures slipped 0.3%.
— Brian Evans